Statoil
Encyclopedia
Allmennaksjeselskap
Allmennaksjeselskap , or ASA, is the Norwegian term for a public limited company. "ASA" or "asa" is added to the company name of all Norwegian companies registered as Allmennaksjeselskap....
is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
in 2007 and was known as StatoilHydro
StatoilHydro
Statoil ASA, trading as Statoil and formerly known as StatoilHydro, is a Norwegian energy company, formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro. The Government of Norway is the largest shareholder in Statoil with 67% of the shares...
until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations
Statoil Fuel & Retail
Statoil Fuel & Retail ASA is a Norwegian energy retail company, formed by the 2010 separation of the downstream business of Statoil ASA into a separate listed company....
owned by StatoilHydro. Statoil is the largest petroleum company in the Nordic countries
Nordic countries
The Nordic countries make up a region in Northern Europe and the North Atlantic which consists of Denmark, Finland, Iceland, Norway and Sweden and their associated territories, the Faroe Islands, Greenland and Åland...
and Norway's largest company, employing over 25,000 people. While Statoil is listed on both the Oslo Stock Exchange
Oslo Stock Exchange
The Oslo Stock Exchange serves as the main market for trading in the shares of Norwegian companies. It opens at 9:00am and closes 5:30pm local time...
and the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
, the Norwegian state still holds majority ownership, with 64 %. The company's headquarters are located in Norway's oil capital Stavanger
Stavanger
Stavanger is a city and municipality in the county of Rogaland, Norway.Stavanger municipality has a population of 126,469. There are 197,852 people living in the Stavanger conurbation, making Stavanger the fourth largest city, but the third largest urban area, in Norway...
. The name Statoil is a truncated form of the State's oil (company).
Statoil is one of the largest net sellers of crude oil in the world, and a major supplier of natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
to the European continent, Statoil also operates around 2000 service stations in 9 countries. The company's CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
from mid-2004 onwards is Helge Lund
Helge Lund
Helge Lund is a Norwegian businessman who is the Chief Executive Officer for the Statoil group, and former CEO of Aker Kværner....
, formerly CEO of Aker Kværner
Aker Kværner
Aker Solutions ASA is a Norwegian multinational provider of services related to engineering, construction, maintenance, modification and operation of both large and small industrial facilities. The company, with roots back to 1841, has its headquarters in Oslo and is listed on Oslo Stock Exchange...
.
Early years
Den Norske Stats Oljeselskap A/S (Norwegian State Oil Company) was founded as a private limited company owned by the Government of Norway on 14 July 1972 by a unanimous act passed by the Norwegian parliament Stortinget. The political motivation was Norwegian participation in the oil industry on the continental shelf and to build up Norwegian competency within the petroleum industry to establish the foundations of a domestic petroleum industry. Statoil was required to discuss important issues with the Minister of Industry, later Minister of Petroleum and EnergyMinister of Petroleum and Energy (Norway)
The Norwegian Minister of Petroleum and Energy is the head of the Royal Norwegian Ministry of Petroleum and Energy.- Councillor of State and Chief of the Ministry of Petroleum and Energy 1978 – 1992 :...
. Statoil was also required to submit an annual report to the parliament.
In 1973 the company started work acquiring a presence in the petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....
industry. This resulted in the development of processing plants in Rafsnes and, in partnership with Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
, the Mongstad
Mongstad
Mongstad is an industrial site located in the municipalities of Lindås and Austrheim in Hordaland, Norway. The site features an oil refinery for Statoil and other oil companies, including Shell. At Mongstad, Statoil has a crude oil terminal with a capacity of . The port at Mongstad is the largest...
plant in 1980. In 1981 the company acquired, as the first Norwegian company, operator rights on the Norwegian continental shelf
Norwegian continental shelf
The Norwegian continental shelf is the continental shelf over which Norway exercises sovereign rights as defined by the United Nations Convention on the Law of the Sea...
on the Gullfaks field. 1987–88 saw the largest scandal in the companies history, the Mongstad scandal
Mongstad scandal
The Mongstad scandal was a crisis in the Norwegian oil company Statoil in 1987-88.The company exceed the NOK 8 billion budget by NOK 6 billion in upgrading the oil refinery at Mongstad. Retrospectively the reasons for the overexpenditure were attributed to bad planning, technical miscalculations...
that made the until then unassailable CEO Arve Johnsen
Arve Johnsen
Arve Johnsen is a Norwegian industrial executive and politician.He was educated in business administration with the degree siviløkonom from the Norwegian School of Economics and Business Administration in 1957 and in law with the degree cand.jur...
withdraw.
Privatization
The company was privatised and made a public limited companyPublic limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
(allmennaksjeselskap
Allmennaksjeselskap
Allmennaksjeselskap , or ASA, is the Norwegian term for a public limited company. "ASA" or "asa" is added to the company name of all Norwegian companies registered as Allmennaksjeselskap....
) in 2001, becoming listed on both the Oslo Stock Exchange
Oslo Stock Exchange
The Oslo Stock Exchange serves as the main market for trading in the shares of Norwegian companies. It opens at 9:00am and closes 5:30pm local time...
and the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. At the same time it changed its name to Statoil ASA.
Merger with Hydro
In December 2006 Statoil revealed a proposal to merge with the oil business of Norsk HydroNorsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
, a Norwegian conglomerate. Under the rules of the EEA
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
the proposal was approved by the European Union on 3 May 2007 and by the Norwegian Parliament on 8 June 2007. Former Statoil's shareholders hold 67.3% of the new company StatoilHydro
StatoilHydro
Statoil ASA, trading as Statoil and formerly known as StatoilHydro, is a Norwegian energy company, formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro. The Government of Norway is the largest shareholder in Statoil with 67% of the shares...
, which started operations on 1 October 2007. The company is the biggest offshore oil and gas company in the world.
In November 2009, StatoilHydro changed its name to simply Statoil, following a prolonged name debate that sparked considerable public interest.
Environmental Record
Statoil had three recent oil spills in the Arctic waters near Norway. All the spills occurred from its ocean rig called the Erik Raude. The company was searching for oil in the region, which environmentalists were against because they wanted the sensitive area free from pollution. However, the Norwegian government allowed oil exploration, as long as there were no emissions. After the merger to StatoilHydro, in December 2007, 25000 barrels (3,974,682.4 l) of oil leaked into the North Sea. This was Statoil’s 2nd worst oil spill. Two leaks also occurred in February 2008. In March, Statoil dropped about 1.6 tons of pure hydraulic oil in the Barents Sea. Hydraulic oil is said to be the 2nd most hazardous pollutant. Since the leaks, Statoil has stated that the oil has mostly dissolved, and there is not much proof of ecological harm. The Norwegian government has not stopped the oil drilling in the Arctic waters, and Statoil started up its oil operations in April. BellonaBellona Foundation
The Bellona Foundation is a multi-disciplinary international environmental NGO based in Oslo, Norway. Founded in 1986 by Frederic Hauge and Rune Haaland as a direct action protest group, it has since blossomed into a recognized technology and solution-oriented environmental champion with offices on...
, a Norwegian environmental group, is looking to take legal action. They want the end of oil drilling in the Barents Sea.
Rotvoll controversy
In 1991 there arose a controversy between Statoil and local environmentalists, mainly from Natur og UngdomNatur og Ungdom
Natur og Ungdom which translates Nature and Youth, also known in English as Young Friends of the Earth Norway is a Norwegian youth environment protecting organisation. It is the only environmentalist youth organisation in Norway. 7000 members in 80 local groups work on environmental issues all...
and Friends of the Earth Norway, who protested the building of a new research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...
centre at Rotvoll
Rotvoll
Rotvoll is an area of Trondheim, Norway located between Leangen to the west and Ranheim to the east. The area has some suburban housing and is otherwise dominated by the StatoilHydro research facility and Sør-Trøndelag University College campus for teacher education...
in Trondheim
Trondheim
Trondheim , historically, Nidaros and Trondhjem, is a city and municipality in Sør-Trøndelag county, Norway. With a population of 173,486, it is the third most populous municipality and city in the country, although the fourth largest metropolitan area. It is the administrative centre of...
, Norway, wetlands area close to the city with significant bird life. The controversy was climaxed with civil disobedience
Civil disobedience
Civil disobedience is the active, professed refusal to obey certain laws, demands, and commands of a government, or of an occupying international power. Civil disobedience is commonly, though not always, defined as being nonviolent resistance. It is one form of civil resistance...
by the environmentalists, but the centre was still built.
Statoil corruption case
The Statoil corruption case refers to the company's misconduct and use of corruption in IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
in 2002/2003 in an attempt to secure lucrative oil contracts in that country. This was mainly achieved by hiring the services of Horton Investments, an Iranian consultancy firm owned by Mehdi Hashemi Rafsanjani, son of former Iranian President Hashemi Rafsanjani. Horton Investments was paid US$ 15.2 million by Statoil to influence important political figures in Iran to grant oil contracts to Statoil. The corruption scandal was uncovered by Norwegian paper Dagens Næringsliv
Dagens Næringsliv
Dagens Næringsliv, commonly known as DN, is a Norwegian tabloid specializing in business reporting with a claimed daily circulation of 82,775 copies in 2008, making it the 8th largest newspaper in Norway. The editor in chief is Amund Djuve. Its name is Norwegian for "Today's Business".Originally...
on 3 September 2003.
Corrib gas project
Statoil was a partner of Royal Dutch ShellRoyal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
in the Corrib gas project, which entails developing a natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
field off the west of Ireland. The project has proved controversial. In the summer of 2005, five men
Rossport Five
The Rossport Five are James Brendan Philbin, brothers Philip and Vincent McGrath, Willie Corduff and Micheál Ó Seighin. All five are from Kilcommon parish, Erris, County Mayo, Ireland and were jailed on 29 June 2005 by Justice Finnegan, President of the High Court of the Republic of Ireland, for...
from County Mayo
County Mayo
County Mayo is a county in Ireland. It is located in the West Region and is also part of the province of Connacht. It is named after the village of Mayo, which is now generally known as Mayo Abbey. Mayo County Council is the local authority for the county. The population of the county is 130,552...
were jailed for contempt of court after refusing to obey a temporary court injunction forbidding them to interfere with work being undertaken on their land. The ensuing protests led to the Shell to Sea
Shell to Sea
Shell to Sea is a campaign based in Cill Chomáin parish, Erris, County Mayo, Ireland which opposes the proposed construction of a natural gas pipeline through the parish and the ongoing construction by Royal Dutch Shell, Statoil and Vermilion Energy Trust of a refinery at Bellanaboy intended to...
campaign that opposes the project.
External links
- Corporate website
- World’s Largest Carbon Sequestration Project Approved
- Statoil operated oil fields Detailed list of all oil fields operated by Statoil
- Statoil's Lubricants
- Statoil Denmark
- Statoil Sweden